The founders of Samourai Wallet could be facing a maximum of five years in prison, as U.S. prosecutors push for the harshest penalties for their involvement in operating a crypto mixing service implicated in laundering millions in illegal funds.
Summary
- The founders of Samourai Wallet are at risk of a five-year prison sentence for running an unlicensed money transmitter.
- Sentencing hearings are set for November 6 for Keonne Rodriguez and November 7 for William Lonergan Hill.
- Prosecutors allege the duo catered to darknet users and profited by collecting over $6.3 million in fees from illicit activities.
A sentencing memorandum submitted to the U.S. Attorney’s Office for the Southern District of New York stated that founders William Lonergan Hill and Keonne Rodriguez “actively solicited, encouraged, and invited criminals” to use their platform, transforming Samourai Wallet into a “venue for large-scale money laundering and sanctions evasion.”
The memo contended, “Rodriguez and Hill weren’t passive observers of the illicit transactions occurring through Samourai; they deliberately marketed the service to entice criminals to utilize the platform for money laundering.”
One notable piece of evidence cited was a WhatsApp message from 2018, in which Rodriguez referred to mixing as “money laundering for bitcoin,” indicating a clear understanding of the purpose of their platform.
Furthermore, Hill reportedly engaged with users on dark web forums, including Dread, where he promoted Samourai’s Whirlpool service as a means to “clean dirty BTC” and render transactions “untraceable.”
As highlighted by prosecutors, “Rodriguez and Hill made millions of dollars by facilitating money laundering activities linked to drug trafficking, darknet marketplaces—including murder-for-hire schemes and child sexual abuse material distribution—cyber fraud, and sanctions evasion.”
From 2015 to 2024, estimates suggest that Samourai Wallet earned approximately $6.3 million in fees through its mixing services, equivalent to about 246.3 BTC. Given Bitcoin’s rapid appreciation, that amount is now valued at over $26.9 million.
While prosecutors are advocating for the full five-year sentence due to violations of conspiracy to operate an unlicensed money transmitting business as per 18 U.S.C. § 371, the probation office has suggested a lighter sentence of 42 months for each defendant.
The ultimate decision lies with the judge, with Rodriguez’s sentencing scheduled for November 6 and Hill’s on November 7 in New York.
Background of the Samourai Wallet Case
For context, Samourai Wallet was shut down by authorities in April 2024 for allegedly enabling unlicensed money transmission and supporting criminals in laundering proceeds through its privacy-focused features.
The founders were apprehended shortly after in April 2024, with Rodriguez captured in the United States and Hill located in Portugal before being extradited. Both entered guilty pleas in July 2025 for conspiring to operate an unlicensed money transmitting business with knowledge that the funds involved were illicit.
